Ukraine war will have impact on Indian economy: FM Nirmala Sitharaman

The ongoing Russia-Ukraine war will certainly have an impact on the Indian economy, Union Finance Minister Niramala Sitaraman said on Tuesday.

"Prices of crude oil prices are rising due to the Ukraine crisis and the Central government is looking up parallel sources," she said.

Answering a question on the impact of rising crude oil prices and ongoing war in Ukraine on the Indian economy in an interactive session here, she said that India imports more than 85 per cent of crude oil. "When oil prices go up, it is concerning and we will have to see how the situation unfolds," she said.

Oil marketing companies fix oil prices based on a 15-day average.

Sitharaman said that the government is exploring if there are any alternative sources from where it can procure crude oil.

"Rising crude oil prices will have a bearing. We have made some provisions for it on the budget. But, it is now beyond that and we will have to see how it can be worked out," she added.

The Minister also said Russia and Ukraine export 30 per cent of wheat which has been stopped after the war began, however, Indian farmers are producing wheat in large quantities. "We have to take up the challenge with a global dimension. We will achieve 'atma nirbharta' and fulfill demands of the world in terms of providing wheat," she said.

Noting that many have objected to the increase of tax on imports, she said that people have to buy the products produced here. "Many are depending on foreign products without making purchases of indigenously manufactured products. The tax has been decreased on products that have been manufactured here," she said.

Sitharaman also said that funds have been distributed equally to all states, and no discrimination is done.

--IANS

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